Zeev & Sandstuff:
Allow me to synthesize the data/assumptions presented here, then please edit & supplement as needed.
1. IMP generates about $10MM in revs per Q ($9.8MM per latest 10-Q).
2. Zeev, you assume IMP can sell enough EL drivers to generate another $10MM in revs per Q, based upon a volume of 2MM units sold per year.
3. You state that 2MM units would represent just 2% of the market for the portable wireless segment. Hence, you're projecting this segment represents annual sales of 100MM units.
4. If IMP sells 2MM units/year, or 500K units/Q, $10MM in Q sales imputes to a sales price of $20/unit.
5. So, your analysis, Zeev, is premised upon a $2B market for EL drivers -- just for the portable wireless segment. Is this realistic?
6. Sandstuff adds that the total EL market is only about $25MM, but there exists a Supervisor market of about $130MM, for a total of $175MM. (Sandstuff, is this today's market size? What about growth?)
7. If we round up Sandstuff's numbers to $200MM, the info translates to a market 20% of the market you estimate Zeev. Hence, the $10MM/Q revs reduces to $2MM/Q.
Am I incorrect on any point so far? I would appreciate if both you gentlemen would comment. Thanks in advance.
I do believe that IMP has hired some quality sales reps in this area. It appears they have a reputation for creating results. This is a must. Zeev, your 2% appears on its face on the conservative side, which is good. But how realistic is it for IMP to capture a larger share of this market. If IMP can grow this particular franchise, I think we got something here. |
